Friday, March 5, 2010

The One-, Three-, Six- and Twelve-Month Eurodollar LIBOR Rates All Climbed Higher On Both The Day and The Week

The one-, three-, six- and twelve-month Eurodollar LIBOR rates all climbed higher on both the day and the week. The 3-month TED spread narrowed on both the day and the week.

Image courtesy: The Wall Street Journal OnlineRight now, the yield on the 3-month U.S. Treasury Bill is 0.145%. Therefore, the 3-month TED spread is currently 0.10863 percentage point; it was 0.11719 yesterday, 0.13669 last Friday and 4.60875 on October 10, 2008 during the peak of the global banking crisis.

For the 3-month TED spread, a figure between zero and 0.50 percentage point (0.50 percentage point = 50 basis points) is a strong indication that large, international banks are lending money to each other with confidence.

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